Parts industry, diplomatic difficulties, new industrial policies, water, inaccessibility, thirst


"The Automobile Industry Development Policy" is listed in the first chapter entitled "Policy Objectives": "Cultivate a batch of spare parts companies with comparative advantages to achieve scale production and enter the international auto parts procurement system and actively participate in international competition." However, this piece of policy that should have rejoiced parts and components companies was unexpectedly overwhelmed. Some of the parts and components companies interviewed by the reporter only expressed "cautious optimism."

Both are angry

A person from a Shenzhen automotive electronics company believes that Article 12 of the new industrial policy specifically lists the support for the development of the automotive electronics industry. This is a great encouragement to them, but the new policy does not mention specific support measures. What kind of benefits will be brought to their companies, but only after they have come up with supporting regulations? Some other parts and components companies also said that the new industrial policy has expressed support for the development of parts and components industry in many places, but did not talk about any operability measures.

In the face of numerous practical difficulties, component manufacturers do not expect a piece of paper policy to solve all problems. Tian Yushi, General Manager of FAW-Foot Automobile Parts Co., Ltd., fell drastically, saying that the relevant government departments have not only neglected the attention paid to the parts and components industry for a long time, but even required parts and components to make joint ventures for the joint venture of the entire vehicle. There are many problems in the development of domestic parts and components industry. At present, the space for survival of Chinese-funded parts and components companies is being severely squeezed by foreign-funded enterprises. According to the statistics of relevant data in 2003, the imported parts amounted to more than 6 billion U.S. dollars, equivalent to about 30% of the total domestic parts and components. At the same time, some domestic vehicle joint ventures are engaged in KD production. About 70% of the new models listed in the past two years are produced using KD.

Under this premise, it is difficult for Chinese-owned parts and components enterprises to squeeze into the supporting system of the entire vehicle joint venture. Although there are new cars listed, these domestic so-called new cars have already been listed in foreign countries and related supporting systems have already been established. Chinese-funded parts and components companies must start from scratch, and the follow-up foreign-funded supporting enterprises have long been accommodating and are simply not at the starting line.

Ouyang Jie, Vice President of Dongfeng Motor Co., Ltd. and General Manager of the Parts and Components Division also shared the same view: For the sake of the interests of the entire group, parts and components are severely constrained by the vehicle. The group's focus is on the development of the vehicle. The development of components has been greatly constrained in terms of resources and investment. In terms of scale, Guang may not be able to meet the needs of the group's complete vehicles. However, it wants to expand cooperation with other vehicle manufacturers and is strictly controlled by the group. In addition, the current competition in the vehicle is shifting cost pressures to parts and components.

According to Guo Konghui, academician of the Chinese Academy of Engineering and dean of the Jilin University Automotive School, the crux of the parts problem is in the vehicle manufacturer. “The entire vehicle joint venture has brought in a large number of wholly foreign-owned parts and components companies. The foreign-controlled vehicle manufacturers have given them all the benefits. It is difficult for the Chinese-owned parts and components companies to have a leading role.”

Backwaters

Regarding the KD production issues that domestic parts and components companies are concerned about, although the new industrial policy has made detailed regulations on the identification of imported features, the industry’s original expectation of not imposing regulations such as the levying of complete vehicle tariffs on the characteristics of the imported parts and components of the entire vehicle. Even the localization rate must reach 40% and other original regulations are gone.

Qian Pingfan, deputy director of the Industrial Economic Research Office of the Development Research Center of the State Council, once proposed to gradually cancel the localization rate. He said that the localization requirements are to a large extent protected from backwardness. Without such protection, they can stimulate domestic parts and components companies to catch up. Xu Bingjin, vice president of the China WTO Research Association, recalled that at the beginning of the 1990s, the machinery company at the time proposed to engage in 100 "small giants" in the production of spare parts, and a "small giant" would invest 100 million yuan. At that time, there was a controversy in the National Planning Commission. Because there wasn't so much money to invest in, then there were many ways to think about it, and it still didn't work. It seems that relying on state support is not the fundamental solution to the problem.

Many Chinese parts and components companies are now very interested in the provisions of the new industrial policy on vehicle development. They are most willing to discuss the independent research and development of vehicle manufacturers, increase the level of specialization, import of whole vehicles and parts. The subject of certification and so on. "If we can have more things for our vehicle companies, our living space will be even greater." The head of a Chinese-owned parts and components company voiced his voice.


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